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Tether’s Gold-Backed Stablecoin in Demand as Commodity Hits ATH

Tether’s Gold-Backed Stablecoin in Demand as Commodity Hits ATH


The Tether Gold stablecoin was valued at $1,902 on July 24, putting the price of gold within reach of the commodity’s all-time high set in September 2011.

Gold has risen 22.7% from $1,550 to $1,902 since Tether Gold (XAUT) — a stablecoin allowing ownership of one troy ounce of gold held in a Swiss vault controlled by the company — was released on Jan. 23. According to The Wall Street Journal, the commodity set a new record for closing price at $1,897.50 on July 24, but has yet to reach its record intraday high of $1,921 from 2011.

The surge comes just three days after the U.S. government announced a second stimulus bill to counter the economic impact of the COVID-19 pandemic.

“In times of uncertainty, people like having accessibility to gold,” said Paolo Ardoino, Tether Chief Technology Officer (CTO). “Tether Gold is clearly a product that resonates in these times.”

Bitcoin or gold?

The price of Bitcoin (BTC) briefly rose above $10,000 today after a particularly long stretch of low volatility between $9,000-$9,500. 

However, for gold bugs like Peter Schiff, traders who invest in Bitcoin are not looking for stability. He said that investors aren’t going to “get rich on gold” — or, consequently, gold-backed stablecoins — but they assume less risk in losing more from volatile crypto prices. 

Today Schiff continued to push the idea that “a big drop” in BTC price was inevitable:

Meanwhile, Tether’s USD-backed stablecoin (USDT) reached a market capitalization of more than $10 billion on July 22.





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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin11,702 0.11 % 1.41 % 0.56 %
Ethereum423.11 0.48 % 8.03 % 7.24 %
XRP0.2937 0.29 % 4.89 % 3.17 %
Tether0.9984 0.13 % 0.12 % 0.07 %
ChainLink17.10 1.30 % 2.79 % 68.24 %
Bitcoin Cash291.81 0.15 % 3.32 % 5.49 %
Cardano0.1386 0.06 % 0.36 % 3.62 %
Bitcoin SV210.76 0.02 % 3.24 % 11.08 %
Litecoin56.29 0.14 % 3.91 % 4.88 %
Binance Coin21.45 0.35 % 0.60 % 5.61 %